The Public Employment Service in the United States

Over the last decade, labour market policy in the United States has been undergoing a period of significant restructuring. In the face of welfare reform initiatives, persistent unemployment and declines in real income among some groups (particularly the less skilled), and continued economic expansion, there is pressure on the public employment service (PES) to improve effectiveness. But, it must also come to terms with resource limitations.
How have reforms fared so far - what seems to be working well or not so well? Which of the new approaches may require revision in the event of an economic downturn? Where might adjustments lead to improved effectiveness? While considering such questions, this publication provides an in-depth look at the PES and recent policy initiatives in the United States. Areas of concern about recent reforms are outlined and options for making policies more effective are presented.

Table of Contents

This study examines the public employment service (PES) in the United States. PES agencies are at the centre of current policy debates on how best to design and implement efficient and equitable employment-oriented labour market and social policies. Given the range of issues addressed, this study is broadly defined to include the public labour exchange, unemployment insurance, referral mechanisms for active labour market programmes, and certain employment-related aspects of social welfare programmes. In order to highlight the decentralised structure of the PES, the review includes an in-depth look at policy implementation in two leading states where policy changes have been quite extensive– Connecticut and Wisconsin.

Chapter 1. Introduction

Chapter 2. The American Labour Market and Basic PES StructureA. Labour market overview
B. The structure of unemployment
C. Earnings and income
D. Employment protection
E. The origins of the public employment service in the US
F. Key labour market policy institutions and actors
G. US Department of Labor and the state employment security agencies
H. Staffing
I. Funding the PES system
J. Key programmes and benefit schemes

Chapter 5. Profiling Unemployed Job-seekers: Identifying those At-risk of Long-term unemployment for Early Intervention and AssistanceA. Introduction
B. Profiling procedures in the United States
C. Profiling in Connecticut and Wisconsin
D. How does profiling work in practice?
E. How do profiled job-seekers fare in the labour market?
F. Improving the performance of profiling: key issues that must be addressed